Federal District Court Judge Rules That the Corporate Transparency Act is Unconstitutional

Published: Mar 5, 2024
By: Jeffrey Kelson
Topics: Tax
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On March 1, 2024, a federal district court judge ruled that the Corporate Transparency Act (“CTA”) is unconstitutional; holding that Congress does not have the constitutional authority to regulate entities “the moment they obtain a formal corporate status from a State.”

The court ordered a permanently enjoined enforcement of the act by the Treasury, FinCEN, or any other agency against the plaintiffs. The government filed an appeal with the Court of Appeals for the Eleventh Circuit on March 11,2024. Those who think they may be impacted by this decision should reach out to legal counsel for guidance.

For our previous discussion of the CTA and the beneficial ownership reporting requirements, see here.

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Jeffrey Kelson

Jeffrey Kelson CPA, National Corporate Tax Group Leader and a leader of services in the New Jersey office with expertise in corporate tax compliance and planning, m & a, local, state and international taxation, sales and use tax, bankruptcy and SEC issues relating to IPOs and privatization.

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